Valuation Report EIF Staarwood 1 Dec 2014
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VALUATION REPORT European Industrial Fund – France, Germany and Netherlands Starwood Capital Europe Advisers LLP Bank of America Merrill Lynch International Limited 2 King Edward St London, EC1A 1HQ Date of Valuation: 1 December 2014 TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 2 VALUATION REPORT 3 PROPERTY REPORTS 4 MARKET COMMENTARY 5 LETTER OF INSTRUCTION EXECUTIVE SUMMARY 2 1 EXECUTIVE SUMMARY EXECUTIVE SUMMARY 3 EXECUTIVE SUMMARY The Properties Address: 32 properties located in France (27), Germany (3) and Netherlands (2) Main Use: Industrial The European Industrial Fund comprises a total of 32 properties located in France (27), Germany (3) and Netherlands (2). The total portfolio is approximately 223,000 sq m. Tenure Freehold Tenancies and Covenant Strengths Details are provided in the individual property reports in Section 3. Valuation Methodology Investment Valuation Methodology – Traditional Approach. We have used Argus Valuation Capitalisation software. Valuation Summary A summary of our valuation figures for the overall portfolio and by country are set out below. Market Value €130,437,000 (ONE HUNDRED AND THIRTY MILLION, FOUR HUNDRED AND THIRTY SEVEN THOUSAND EUROS) VALUATION SUMMARY - EUROPEAN INDUSTRIAL FUND - 1 DECEMBER 2014 COUNTRY TOTAL AREA (SQM) VACANT AREA (SQM) GROSS RENT NET RENT GROSS ERV VACANT ERV CAPEX COSTS GROSS MULTIPLIER NIY GROSS VALUE MARKET VALUE France 167,176 27,764 €9,654,696 €8,681,448 €10,733,679 €1,547,655 €2,849,225 11.2 x 7.34% €118,282,071 €107,832,000 Germany 41,703 0 €2,344,361 €2,264,283 €1,877,550 €0 €695,436 8.0 x 11.24% €20,137,460 €18,745,000 Netherlands 13,986 382 €427,000 €351,965 €590,523 €26,700 -€330,700 9.0 x 7.84% €4,489,761 €3,860,000 TOTAL 222,865 28,146 €12,426,057 €11,297,696 €13,201,752 €1,574,355 €3,213,961 €142,909,292 €130,437,000 FRANCE REF PROPERTY NAME COUNTRY SECTOR TOTAL AREA (SQM) VACANT AREA (SQM) GROSS RENT NET RENT GROSS ERV VACANT ERV CAPEX COSTS* GROSS MULTIPLIER NIY EY RY GROSS VALUE MARKET VALUE FRA-038 Nuelles (l'Abresle) France Logistics / Industrial 4,265 0 € 189,300 € 185,888 € 170,600 € 0 € 0 8.1 x 11.37% 10.50% 10.23% € 1,633,807 € 1,530,000 FRA-007 Bonneuil sur Marne France Logistics / Industrial 2,238 162 € 55,856 € 46,863 € 217,760 € 17,010 € 0 43.2 x 1.81% 8.31% 8.35% € 2,580,232 € 2,415,000 FRA-025 Le Mesnil Amelot France Logistics / Industrial 1,763 443 € 95,963 € 82,223 € 123,400 € 31,000 € 0 12.6 x 6.35% 9.22% 9.43% € 1,294,822 € 1,210,000 FRA-010 Collegien France Logistics / Industrial 4,023 333 € 296,068 € 284,433 € 292,720 € 23,300 € 250,000 9.2 x 9.80% 9.28% 9.98% € 3,151,852 € 2,715,000 FRA-024 Blanc Mesnil France Logistics / Industrial 4,728 0 € 364,917 € 361,608 € 330,900 € 0 € 0 10.9 x 8.54% 7.85% 7.75% € 4,230,030 € 3,955,000 FRA-017 Fontenay Salengro 1 France Logistics / Industrial 5,326 1,006 € 375,679 € 331,029 € 385,970 € 70,400 € 195,000 10.2 x 8.11% 8.91% 9.27% € 4,275,077 € 3,815,000 FRA-021 Fontenay Ionics France Logistics / Industrial 2,833 0 € 240,000 € 235,223 € 238,865 € 0 € 0 11.1 x 8.27% 8.00% 8.23% € 2,842,141 € 2,660,000 FRA-057 Villepinte France Logistics / Industrial 7,213 0 € 367,083 € 363,475 € 360,800 € 0 € 400,000 9.7 x 9.58% 8.60% 9.42% € 4,191,467 € 3,545,000 FRA-029 Lisses Porges France Logistics / Industrial 7,148 0 € 400,288 € 398,358 € 385,992 € 0 € 0 11.4 x 8.18% 8.00% 7.89% € 4,867,612 € 4,555,000 FRA-019 Fontenay Neuilly France Logistics / Industrial 5,818 1,027 € 420,078 € 369,846 € 464,300 € 81,800 € 0 11.0 x 7.50% 9.10% 9.22% € 4,933,358 € 4,615,000 FRA-016 Lisses Bois Charland France Logistics / Industrial 5,531 0 € 537,558 € 531,507 € 484,100 € 0 € 0 9.4 x 9.88% 8.75% 8.89% € 5,377,152 € 5,030,000 FRA-049 St Michel sur Orge France Logistics / Industrial 5,344 430 € 413,639 € 392,754 € 428,920 € 32,090 € 250,000 9.7 x 9.12% 9.31% 9.86% € 4,555,249 € 4,025,000 FRA-041 Pontault Combault (Copy Mix) France Logistics / Industrial 1,995 0 € 150,031 € 148,634 € 139,700 € 0 € 100,000 10.5 x 8.86% 8.00% 8.24% € 1,776,904 € 1,570,000 FRA-031 Lognes Campanules 18 France Logistics / Industrial 3,200 0 € 240,071 € 237,895 € 217,600 € 0 € 0 9.4 x 9.88% 9.00% 8.95% € 2,406,040 € 2,250,000 FRA-050 Sucy en Brie France Logistics / Industrial 3,663 2,151 € 124,423 € 43,896 € 294,500 € 172,700 € 48,435 23.7 x 1.39% 8.78% 9.29% € 3,195,064 € 2,945,000 FRA-018 Fontenay Bobet France Logistics / Industrial 2,994 920 € 197,039 € 168,666 € 204,260 € 46,220 € 255,790 9.0 x 8.86% 8.95% 10.52% € 2,157,792 € 1,780,000 FRA-052 TOTAL Torcy Nord France Logistics / Industrial 13,765 2,692 € 660,569 € 570,462 € 705,854 € 137,535 € 0 11.1 x 7.24% 8.92% 8.87% € 7,875,154 € 7,365,000 FRA-015 Croissy Beaubourg France Logistics / Industrial 14,749 4,545 € 779,570 € 594,575 € 1,205,752 € 269,900 € 300,000 15.2 x 4.70% 9.03% 9.46% € 12,937,136 € 11,820,000 FRA-053 Torcy Coutures France Logistics / Industrial 4,023 216 € 411,841 € 401,272 € 381,000 € 27,000 € 0 10.0 x 9.08% 8.29% 8.54% € 4,415,390 € 4,130,000 FRA-002 Argenteuil France Logistics / Industrial 4,081 0 € 204,417 € 202,458 € 195,900 € 0 € 100,000 9.4 x 9.88% 9.13% 9.47% € 2,147,358 € 1,915,000 FRA-033 Lognes (Courcerin) France Logistics / Industrial 3,535 385 € 238,688 € 226,365 € 247,900 € 27,000 € 0 10.3 x 8.60% 9.20% 9.33% € 2,629,842 € 2,460,000 FRA-040 Pontault Combault (Multi let) France Logistics / Industrial 4,912 394 € 312,727 € 300,001 € 343,900 € 27,600 € 0 10.4 x 8.63% 9.64% 9.80% € 3,473,354 € 3,250,000 FRA-028 Lisses (Leonardo de Vinci) France Logistics / Industrial 5,120 0 € 452,849 € 448,944 € 390,500 € 0 € 100,000 9.1 x 10.13% 8.75% 8.73% € 4,528,084 € 4,140,000 FRA-034 Nanterre France Logistics / Industrial 5,344 665 € 714,460 € 679,942 € 749,200 € 88,300 € 0 12.1 x 7.38% 8.08% 8.05% € 9,206,283 € 8,610,000 FRA-058 Gargenville France Logistics / Industrial 24,600 12,395 € 524,858 € 290,125 € 984,000 € 495,800 € 0 16.0 x 3.24% 9.96% 10.78% € 8,944,773 € 8,423,000 FRA-059 Croissy Beaubourg 17 France Logistics / Industrial 9,199 0 € 461,948 € 448,494 € 448,476 € 0 € 220,000 9.9 x 9.16% 8.63% 8.88% € 5,114,690 € 4,579,000 FRA-062 Villefranche/Saône France Logistics / Industrial 9,766 0 € 424,776 € 395,465 € 341,810 € 0 € 630,000 5.9 x 14.65% 9.25% 12.41% € 3,328,890 € 2,525,000 Total France 167,176 27,764 €9,654,696 €8,740,401 €10,734,679 €1,547,655 €2,849,225 €118,069,553 €107,832,000 GERMANY REF PROPERTY NAME COUNTRY SECTOR TOTAL AREA (SQM) VACANT AREA (SQM) GROSS RENT NET RENT GROSS ERV VACANT ERV CAPEX COSTS GROSS MULTIPLIER NIY EY RY GROSS VALUE MARKET VALUE GER-002 Urbach Germany Logistics / Industrial 8,490 0 € 387,965 € 360,843 € 393,155 € 0 € 245,634 7.9 x 10.84% 9.00% 11.00% € 3,572,637 € 3,065,000 GER-004 Sindelfingen Germany Logistics / Industrial 11,389 0 € 731,591 € 693,894 € 614,952 € 0 € 285,542 9.0 x 9.74% 7.80% 8.11% € 6,833,391 € 6,560,000 GER-005 Simmern Germany Logistics / Industrial 21,824 0 € 1,224,805 € 1,209,546 € 869,443 € 0 € 164,260 7.4 x 12.22% 10.00% 7.94% € 9,731,432 € 9,120,000 Total Germany 41,703 0 €2,344,361 €2,264,283 €1,877,550 €0 €695,436 €20,137,460 €18,745,000 NETHERLANDS REF PROPERTY NAME COUNTRY SECTOR TOTAL AREA (SQM) VACANT AREA (SQM) GROSS RENT NET RENT GROSS ERV VACANT ERV CAPEX COSTS GROSS MULTIPLIER NIY EY RY GROSS VALUE MARKET VALUE NET-002 Vaassen 2 Netherlands Logistics / Industrial 4,578 0 € 75,000 € 51,731 € 145,093 € 0 -€ 66,000 10.5 x 5.67% 10.00% 13.29% € 911,350 € 785,000 NET-003 Vaassen 1 Netherlands Logistics / Industrial 9,408 382 € 352,000 € 300,234 € 445,430 € 26,700 -€ 264,700 8.7 x 9.06% 9.91% 11.86% € 3,578,411 € 3,075,000 Total Netherlands 13,986 382 €427,000 €351,965 €590,523 €26,700 -€330,700 €4,489,761 €3,860,000 *CAPEX This includes tenant improvement and fit out costs, letting and re-letting fees and refurbishment capex.